The price of all types of insurance, from health to life to automobile, continues to rise and the coverage seems to be more and more limited or restricted. Finding affordable insurance can be difficult, but there are a few simple steps you can take to ensure that you find insurance for a fair and affordable rate.
Obtain a Quote Before You Buy
Doing research before signing on the dotted line for any purchase is always a smart move, and will usually save you hundreds, if not thousands of dollars. Researching insurance before purchasing it is no exception, and researching the price of insurance before buying a new car or home is a wise move as well. You may be able to afford the payments, but the insurance could be much higher than you expected. In the case of homeowners insurance, homes that appear to be exactly the same could have very different premiums; as much as 15 percent. There are many different factors that determine the insurance price, such as location in proximity to emergency services or the age of the homes’ plumbing, or heating and electrical systems. The price difference resulting in these differences is a good reason to shop around.
Also, when purchasing a new car, research the amount your car insurance may go up. Just because you can afford the payments on that newer, sportier car, doesn’t mean you want to be saddled with the insurance premiums. Knowing the full price before purchasing is important to understanding how it would impact your monthly budget.
Know What You Are Insuring
When you get an insurance quote for a new home, make sure the quote does not include the price of the land. You only want to insure the value of your home. If your home is damaged in a fire, flood or other disaster, it typically will not harm the property.
Keep Things Simple
One of the easiest ways to obtain cheap insurance is to use one insurance company for all of your insurance needs. Many companies will offer lower premiums in the form of a multi-line discount if you purchase all of your policies from them. The discount could be close to 10 percent from some companies.
Increase the Deductible
Another easy way to get a lower insurance price is to be willing to raise your deductible, which is the amount you are responsible for paying if you make a claim. If you do raise your deductible, even by only $500, it can save you up to 25 percent, which can be quite a substantial savings each month.
Raise Your Credit Score
Credit scores dictate everything, from the amount of interest you will pay each month on a house or car loan, or your credit card. It can also affect your insurance as some insurance companies will check your score to determine the amount they should charge you each month.
There are a few other, more specific things you can do to obtain more affordable insurance.
- Stop smoking. Not only will this lower the cost of your health insurance premium, but it may also lower the cost of your homeowners insurance.
- Raise the alarm. When looking for low cost insurance for your home or car, consider installing an alarm system or theft deterrent system. Most insurance companies will give you a discount for protecting your assets.
- Protect yourself. If you live in an area regularly hit by natural disasters such as hurricanes or earthquakes, you may consider protecting your home and thereby lowering your insurance by adding a stronger or a reinforced roof or special hurricane shutters. Also upgrading your interior systems, plumbing, heating or electrical can also help save money.